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STARGROUP LIMITED ASX:STL

Investor UpdateNOVEMBER 2016

Certain statements in this document relate to the future. These forward looking statements involve known andunknownrisks, uncertainties, assumptions and other important factors that could cause the actual results, performance or achievements of the Company and the Business to be materially different from future results, performance or achievements expressed or implied by such statements. Such forward lookingstatements are based on numerous assumptions regarding present and future business strategies and the environment inwhich the Company will operate in in thefuture. No representation, assuranceorguarantee

is given that the occurrenceof the events expressed or implied in any forward looking statements in this documentwill actuallyoccur. The forward looking statements in this document reflect views held only at the dateof this document.

Past performance informationgiven in this document is given for illustrative purposes only and should not be relied upon as (and is not)an indicationof future performance. By accepting this document, the Recipient agrees that it will makeand rely solely upon its own due diligence investigations andenquiries and will not in anyway rely upon anyof the information in this documentor use this document for anypurpose other thanas information to assist the Recipient and itsadvisers to undertake its own due diligence investigations andenquiries.

None of the statements, opinions, projections, forecasts or other forward-looking information contained in this document have been independently verified and no commitment, representation, or warranty, express or implied, is made in

relation to their accuracy, reasonableness or completeness. Furthermore, wherestatements in this documentare taken from or attributed to sources createdby third parties, the Recipient should have regard to those sources and rely on its own enquiries.

Stargroup hasprepared this document based on information available to it at the time of preparation and subject to the qualifications in this document. To the maximum extent permitted by law, neither the Company nor anyof its respective related bodies corporate or other affiliates, directors, officers, employees, representatives, agents, advisors or their respective advisors’ affiliates or partners, directors, officers, employees orcontractors (eachaLimited Party and together the Limited Parties) takes any responsibility for the contents of this document or any action taken by the Recipient or any other person on the basis of the information contained in this document. The Limited Parties disclaim anyobligation or undertaking to disseminateafter the date of this document any updates or revisions to any forward looking statements to reflect any change in

expectations in relation to those statements or any change in events, conditions or circumstances on which any statement is based. Tothe maximum extent permittedby law any and all liability in respect of this document and the information contained within it is expressly excluded including without limitation any direct, indirect or consequential liability, expenses, damages or costs incurred by the Recipient or any other person as a result of their receipt or useof this document or arising from the information in this documentbeing inaccurateor incomplete in any way for any reason, whether by negligence or otherwise. No Limited Party makes any representation or warranty, express or implied, as to the currency, accuracy, completeness, reliability, fairness or correctness of the information contained in this documentor about Stargroup generally or anyopportunity to invest in Stargroup in the future.

Disc l a imer

This document does not, anddoes not purport to, address anyor all issueswhich are or may be material or of interest to the Recipient in connection with its own due diligence review of the Company, the Business or otherwise.The Recipientmay not, andby receiving this document the Recipient acknowledges that it is not entitled to and agrees not to, rely on any part of this document (whether as to amatter of fact, forecast, opinion or belief) for any purpose whatsoever.

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Corporate overview

MAJOR SHAREHOLDERS % OWNERSHIP

DIRECTORS, MANAGEMENT, RELATED PARTIES

16 .49%

TOP 20 65 .87%

OGNENIS GROUP 18 .94%

ZANI GROUP 15 .18%

NEOICP KOREA INC 5 .30%

CORPORATE SNAPSHOT

ASX CODE S T L / S T L O

CASH AND EQUIVALENTS $1 .1MIL

MARKET CAP ($0.035/SHARE) $20 .80MIL

52 WEEK HIGH ($/SHARE / $/OPTION) 0 .046 / 0 .015

52 WEEK LOW ($/SHARE / $/OPTION) 0 .030 / 0 .006

SHARES/OPTIONS ON ISSUE 594MIL /48MIL

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Board of directors

TO D D ZANICEO & EXECUTIVE CHAIRMAN

Mr Zani was the founder of Ezeatm in early2000 and subsequently vended that businessinto Ezeatm Limited in 2011, which becamethe largest ASX-listed ATM deployer with amarket capitalisation of $34.45 million.

He is a Chartered Accountant with over 25years’ experience and is a director of EzetaxPty Ltd, a chartered accounting firm hefounded in 1999. Mr Zani was the CEO andCFO of Ezeatm from 2006 to 2013.

E V A N M c G R E G O R NON -EXECUTIVE DIRECTOR

Mr McGregor has a wide range of business development skills as a result of many years’ involvement with listed companies such as Asia Infrastructure, Entertainment World, Zeolite Australia, Media Entertainment Group and London Securities

He has served as a Chairman, Chief Executive Officer and Non-Executive Director of several large organisations and his experience includes strategic analysis, negotiations on complex commercial matters and corporate and financial management.

JONG HO ( J AY ) KI MNON-EXECUTIVE DIRECTOR

Mr Kim is CEO and President of Design Studio Inc. and an Adjunct Professor at HanyangUniversity in Korea. He has been educated in the US in Urban Design and held a prior non-executive role with LG. Mr Kim is also a respected executive with extensive networks in the casino gaming industry across Macau, Hong Kong and Japan.

Mr Kim brings valued business and advisory experience to assist in securing casino cash handling business in Asia.

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Key Investment Highlights• Proven monetization model and profitable business

• Highly experienced Board and Management Team with over 75 years experience and track record of building large scale operations

• Recurring revenue from long term contracts in both ATM and EFTPOS divisions

• Gross revenue FY 2016 of $3.6mil, increased by 519%. Estimated revenue for FY 2017 of >10mil, a >200% increase

• Maiden dividend Payment anticipated to be paid in June 2017

• Attractive entry point. Undervalued compared to market peers and net assets are > market value.

• Further EPS accretive acquisitions under contract

• In complete control of the ATM cash cycle from switching, processing, deployment, manufacture and cash replenishment

• Significant catalysts to be delivered in 2017 including major cost savings of >50% since 1 July 2016, launch of new EFTPOS technologies in early 2017, the intelligent deposit ATM launched in October 2016 into remote communities, a significant % increase in revenue and EBITDA forecast for FY17 and maiden dividend payment earmarked for June 17

Building a leading financial technology company

THE ONLY VERTICALLY INTEGRATED, AUSTRALIAN AUTOMATIC TELLER MACHINE (“ATM”) DEPLOYMENT COMPANY ON THE ASX

WHOLESALE DISTRIBUTOR OF ATMs, RECYCLER ATMs AND BACK

OFFICE TECHNOLOGIES6

ATM DEPLOYMENT COMPANY

EFTPOS AND PAYWAVE TERMINAL PROVIDER

2016 Annual Report Highlights

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Increase in Total Assets789% 521% Improvement in Revenue from Operations

A TRUL Y TRANSFORMATIONAL YEAR FOR STARGROUP LIMITED IN ALL KEY METRICS

670% Improvement in Net Assets

597% Improvement in Gross Profit

819% Increase in Cash and Cash Equivalents

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StarATM revenue metricsLowest Range

Example of an ATMHighest Range

Example of an ATMStarATM’s

Actual Average Results(Oct 2016)

Direct Charge incurred by the customer to use the

ATM

$1.50 $3.00 $2.29

Processing Fee paid to switching Company

$0.20 $0.20 $0.13

Rental/Profit Share paid to Landlord/Merchant/CIT

$0.80 $1.50 $0.99

Gross Profit per transaction $1.00 $1.30 $1.16

Average Number of Transactions

400 1,000 620

Number of Active ATMs 1 1 368 Active ATMs

Gross Profit per ATM $400 $1,300 $721.38

Revenue Profile for expanded ATM and payments network

QUA RTE RLY GROUP REVENUE A CT U A L AND P R O J E C T E D ACTUAL REVENUE F Y 14 , F Y 15, FY16 AND PROJECTED FY17, FY18

• 521% increase inrevenue last financialyear

• 301% increase projected for 2016/17 financial year

• Further increases expected in 2017/18 financial year

“A 521% increase in actual annual revenues in FY16 and a 299% improvement in 2016 YTD revenues compared to the corresponding period in 2015 is a very pleasing performance.”

TO D D Z A N ICEO & EXECUTIVE CHAIRMAN

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$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

2013 - 14 2014 - 15 2015 - 16 2016 - 17 2017 - 18$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Significantly lowered operatingcosts and better payback

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Star Payment Systems has reduced major operating costs of itsATMnetwork by 52.90%with the major cost saving commencing on 1 July 2016.

The reduction hasaccelerated the payback on initialinvestment perATMby four months to only 15 months (a reduction in payback period of more than 20%) on 5 to 7 year site contracts.

Star Payment Systems expects further costsavings in 2017 and 2018 years as part ofongoing negotiations with other keysuppliers.

Indue Acquisition (completion on 31 Dec 2016)will further lower processing costs and GMYcash convenience agreement to reduce CITcosts by >50% in 2017 and following years.

201816141210

86420

Num

bero

fMon

ths

New Payback ModelOld

21.05%improvement

StarPayments typical return on initial investment perATM

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StarATM typical return on initial investment per ATMS TAR G R O UP CONT INUES TO OUT PERFOR M

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Typically a 15-month payback on initial capitalinvestment on a 60 month contract based on $400 GP per machine per month

More than 360 ATMs across Australia

$2.50charge for withdrawal-5,000

-10,000

-15,000

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10,000

5,000

-

15,000

20,000

25,000

30,000

35,000

1 7 13 19 25 31 37 43 49 55 61

N u m b e r o f M o n t h s

• Star Payment Systems signed a three-year Cash Convenience Agreement with an initial limit of $15m for its national ATM network

• Star Payments to provide Goldfields Money with its own state-of-the-art Recycler ATMs to service customers in remote locations where major banks have withdrawn services

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$15m cash agreement with >50% reduction in costs

• Stargroup to partner with Goldfields Money to roll out “Star-labelled” financial products to GMY customers

• Star Payments will save >$600k in cash costs in FY17 on current cash requirements and >$1.5mil in future projected cash costs

• Valuable resource to pick up additional revenue from remote communities

of the total number of withdrawals ofcash

ATM industry statisticsTHE AU STRAL IAN ATM IND USTRY IS STI LL G R O WING AND PROVIDES VALUABLE

ECONOMIC BENEFITS TO SOCIETY.

of ATMsare owned by Independent Service Operators (ISOs)57%

Value of withdrawals from ATMs in2015

Cash withdrawalsfrom ATMs in2015

ATMs in Australia asat 30 June 201632,156

Range of direct charge fees for using ISO ATMs inAustralia

$140.8billion

700 million

$2 - $101 3

73%

Number of ATMs in Australia

1 4

29,000

29,500

30,000

30,500

31,000

31,500

32,000

32,500

Jun 2013 Sep 2013 Dec 2013 Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015 Mar 2016 Jun 2016

“There were over 350 branch closures by the major banks in the last financial year and there has been a major upswing in the % of transactions being performed at IAD ATMs. Our stats are on the rise!”

“In the 16 years that I have been in the game I have seen a 100% reversal in that when I first entered the industry the majors dominated the ATM space. It has now come full circle.”

TO D D Z A N ICEO & EXECUTIVE CHAIRMAN

• Upon completion Stargroup will provide ATM switching to 70 ATM deployers, 1,700 ATMs, 1,350 modems and process 12million transactions a year

• Purchase price of $6.5m, fully funded by way of debt

• Projected annualised revenue increase of $4.1m

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Strategic Acquisition of ATM Processing Business

• Significant synergies and further cost savings to Stargroup and additional and diversified income stream in FY17 and beyond

• Projected annualised EBITDA increase of $1.7m

• Completion expected on 31 December 2016

• Enhanced overall service offering to Indue customers to include improved 24/7 Help Desk Services, Cash Convenience Facility and improved Telco offering to ATM Deployers

StarPOS revenue rising• Fee of 1.00 - 2.50%

charged to the business ownerfor acceptance of VISA and Mastercard based on their cardpaymentmetrics

• Fee of $0.15 - $0.40 chargedfor the processing of Debit Card transactions

• Fee of 0.70 - 0.95%charged to StarPOS for theprocessing of VISA and Mastercard transactionsdependent upon type ofcard usedbycustomer

• Fee of $0.14 charged toStarPOSfor processing of debit card transactions

• Average EFTPOS device in Australia processes approximately$27,000 permonth inVISA and Mastercardtransactions (219transactions) and$24,000 indebit card transactions (410transactions)

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EFTPOS industry statisticsEFTPOS CONT INUES G ROW W ITH THE INT RODUCTION OF PAYWAVE , TH US PROVIDING AN

OPPORTUNIT Y FOR S TAR G R O UP TO PROVIDE ITS TEC HNOLOGIES TO BUSINESSES.

9.24%

in purchasesthrough debit and credit cards in2015

transactions on debit andcredit cards in 2015

$529.2 billion

6,357 billion

increase in number of transactions on debit and credit cards in 2015

13.34%

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EFTPOS terminalsat 30 June 2016934,001growth in the numberof EFTPOS terminalsin2015

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EFTPOS/PayWave terminals growing rapidly in Australia

• Significant increase in number ofterminals since June 2014 attributed toAustralia’s earlyadoption of PayWavetechnologies.

• A large number of current EFTPOS machines in the market arenot PayWaveready, creating an opportunity for StarPOS to provide the new technologies tobusinesses.

• New Technology agreement to further develop API and EDI integrations into the EFTPOS terminal and customse software to merchant needs

NUMBER OF EFTPOS/ PAYWAVE TERMINAL S IN AU STRAL IA

700,000

750,000

800,000

850,000

900,000

950,000

1,000,000

Mar-2014 Jun-2014 Sep-2014 Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016

• StarApps signs five-year distribution deal for EFTPOS terminals and software with Swedish NASDAQ listed group West International AB

• StarApps to own and be in control of the source code within the EFTPOS terminals

• Further development of API integration into the EFTPOS terminals in Australia and New Zealand

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Stargroup to distribute next generation payment solutions in Australia and New Zealand

• Proven software applications with VISA, Mastercard and local EFTPOS schemes in Europe, Asia and South Africa

• Can fast track completion of EFTPOS technology development with major partner with >45,000 business customers to become the largest ISO provider of EFTPOS in Australia

• Typically 6 to 7 Month Payback on 36 month contract

• Certification and deployment of new technologies expected in Q1 2017

NeoICP provides strategic advantage

> Direct ownership interest in NeoICP, manufacturer ofATMs, back office and casino settlement solutions (11.28%)

NeoICP at 30 June 2016 had AUD$17.3mil in net assets

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Gross Revenues of $25.4 million

EBITDA of $2.3mil

NPAT of $1.6mil

> NeoICP finalised a successful pilot of its unique casino settlementsolutions with four Macau casinos and is now distributing this technology throughout Asia.

STARGROUP IS THE ONLY ASX-LISTED COM PAN Y WITH A DIRECT OWNERSHIPINTEREST IN THE MANUFACTURER OF ITS ATMS

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NeoICP is a private South Korean company with >80% of the back officemarket in that country through relationships with the followingconglomerate customers:

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Peer ComparisonCompany Name

(Country/Exchange | Code)Revenue | EBITDA

Market Capitalisation (AUD)Business model/notes

DC Payments Limited(Canadian Listed | TSX : DCI)

$270 million | $69 million $520 million

Global ATM business. 21,575 Active ATMs at 30 June 2016. Number 1 IAD ATM Company in Australia with >11,000 ATMs in Australia. Average transactions per ATM, per month of 508, Net assets of $100 million (Debt of $218million).

85% of revenue from ATM Network. Recently sold to US Listed Cardtronics for >$500 million. Tyro Payments Limited

(Australian | Unlisted Public)$95 million | $0.8 million

>$400 millionAustralian EFTPOS merchant provider to 15,565 merchants. Owns its own EFTPOS payments and processing business.

Recently became an Approved Deposit Taking Institution (“ADI)” post a $100million capital raising in 2016, valuing the company at >$450million. $128million in Net Assets. Further developing white label banking products now that an ADI.

Mint Payments Limited(ASX Listed | MNW)

$5 million | ($5.5 million)$42.4 million

Predominantly Australian EFTPOS and payment technology business with 9,800 EFTPOS merchants with >50% of these in Australia. Global ambitions and further product expansion into Asian markets in 2016/2017. ($1.1mil) in Net Assets

Transaction Solutions International Ltd

(ASX Listed | TSN)

$125,127 | ($993,967) $40.4 million

25% owners of an Indian ATM Management Company that manages approx. 14,000 ATMs in India. Announced acquisition of remaining 75% of interest and in process of raising capital of >$47million for purchase. Net Assets of $11.5 million.

Stargroup Limited(ASX Listed | STL)

$10 million* | $2 million*$20.4 million

Only ASX Listed ATM operator deploying in Australia and only ATM operator that has an ownership interest in its manufacturer, South Korean based NeoICP which also manufactures back office, coin counting and casino settlement

solutions. Average transactions per ATM, per month of 620. STL Net assets of >$20million**. Recent acquisition of Indue ATM businesses will see Stargroup become its own ATM payments and processing provider for

70 other IADs, 1,700 ATMs and 1,350 modems in Australia, processing >12 million transactions per annum.Also an EFTPOS provider developing unique EFTPOS facility and processing for existing partner client base of >45,000

businesses for rollout to that customer based in 2017 and future years.

* Forecast 2016 – 2017 Revenue and EBITDA results as announced** Includes deferred tax assets as disclosed in 2016 Annual Report

Current growth drivers

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Intelligent Deposit certification tobe completed in Q1 CY 2017.

New tenders being pursued with large Australianbusinesses

Signed RATM distribution deal with 1st banking customer (Goldfields Money)

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New EMV technology upgrades required byAustralian businesses and significant upgrade revenue agreed with major customer (1,000ATMs)

Innegotiation with multiple targets for EPSaccretive roll-up

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Five-year distribution deal signed with European EFTPOS manufacturer and software provider

Five-year wholesale EFTPOS/PayWave agreement signedwith world’s leading payment processingcompany

Source code software available for API integration with other industries

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Customers include any business looking to accept Visa,Mastercard and debit card payments

Three-year contracts with merchants

Announced preferred supplier status with one of the largest Australian buying groups on November 24, 2015

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Significant progressin last 12 monthsSTARGROUP LIMITEDASX : STL

> 29th Sep> 13th Sep

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> 12thSep> 30thAug

> 18thAug> 11thAug

> 8thJul> 3rdJun

> 6thApr> 11th Jan

ATM Switch Acquisition

$15m Cash Agreement with GMY

Stargroup Lists on Frankfurt Exchange

EFTPOS Distribution with West International

2016 Performance Shares Issued Early

Record NeoICP Full Year Results

10th Record Quarter Results

Cash My ATM Acquisition

9th Record Quarter Results

8th Record Quarter Results> 24thOct Stargroup signs New Technology Agreement

> 4th Nov> 5th Oct

Record Results Continue

11th Record Quarter Results

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Key Investment Summary• Reduced major operating

costs of ATM network by 52.90%, acceleratingpayback on initial investment per ATM by four months to 15 months(over 20% reduction in payback period) from 1 July 2016

• Disruptive new technologies including the intelligent deposit/ recycling ATMs and casino back office technology being launched in FY2017

• Significant further cost savings in FY17 to improve profitability

• Owner of source code in EFTPOS terminal and five-year distribution agreement with leading European EFTPOS company to distribute hardware and software in Australia and New Zealand.

• Assisting credit unions and others on branch transformation and deployment of Recycler ATM technologies

• White labelling of other financial products to Star customers in FY17

• Significant % increase in revenue forecast for FY17 and maiden dividend payment earmarked for June 17

• Ownership interest in NeoICP, a leading Korean manufacturer of ATMs, back office, coin counting and casino settlement solutions

• In complete control of the ATM cycle from switching, processing, deployment, manufacture and cash replenishment

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ContactsToddZaniCEO & ExecutiveChairman

M +61 419 912 566E todd@starpaymentsystems.com.au